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Ripple CEO Blasts Bitcoin Twice, Compares it to Napster

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Brad Garlinghouse, CEO of Ripple, talked about Bitcoin in an interview with CNBC and at the Recode’s Code Conference yesterday. However, his statements were focused on how Bitcoin will eventually stop being the basis of every crypto-related activity.

Garlinghouse told CNBC, “There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies. It’s early, over time you’ll see a more rational market and behaviors that reflect that.” 

In its first quarter, Ripple signed 20 production contracts with companies such as Kuwait bank and MoneyGram. However, XRP declined in value just like every other cryptocurrency. This is why, Garlinghouse called cryptocurrencies a “nascent industry” where trading is mostly dominated by speculation. He added,“I think it’s a matter of time until people better understand the different use cases.”

Considering that there are more than 1,500 cryptocurrencies, he believes that 99% of them – those which don’t provide valuable services – will be wiped out in the next decade.

At Recode’s Code Conference, Garlinghouse compared Bitcoin to Napster, which was a pioneer in online peer-to-peer file sharing service in the music industry. However, Napster announced bankruptcy and was acquired by another company within three years. “We may come to find that Bitcoin is kind of the Napster of digital assets. This is transformative technology, but Spotify and iTunes and Pandora rule the day because they engaged with regulators to solve a real problem,” said Garlinghouse.

He also mentioned that buying coffee with Bitcoin is not as easy as people think. With a transaction time of 20 minutes, the cost of such an arrangement would ultimately be extremely expensive.

“I don’t think blockchain is solving consumer problems yet … Blockchain has its own peanut butter problem. There are lots of industries that can be touched, but it starts with one,” concluded Garlinghouse.

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